ICICI Direct's research report on Bajaj Auto
Bajaj Auto (BAL) is the second largest motorcycle manufacturer, largest 3-W OEM domestically (FY22 market share at 18.2%, 61.5%, respectively). Exports comprised ~58% of FY22 volumes; 2-W:3-W mix at ~89:11 (overall) • Strong b/s with ~Rs 15,500 crore cash on books (H1FY23), history of ~20% return ratios & one of the highest dividend yields among Nifty stocks.
Outlook
We maintain HOLD rating on BAL primarily tracking slower pace of volume recovery in both domestic and export markets, delay in electric -3-W launch. Revising our estimates, we now value BAL at Rs 3,910 on SOTP basis (16x PE on FY24E Core EPS, stake in PMAG; previous target: Rs 4,180).
For all recommendations report, click here
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.